Prioritise your expenses
First things first: make a list of all your festive expenses and prioritise each one. Decide what’s important to have (food, for example) and what’s a nice-to-have treat. Your list of expenses should include everything from presents to Christmas cards, decorations, special treats, stocking fillers, meals out and new clothes. You might find it helpful to go back through last year’s bank statements to see what you purchased.
Once you have your list, it’s time to check it twice. Brean Horne, Personal Finance Expert, at Nerd Wallet, advises: ‘Prioritising your Christmas spending can help you cut costs and save money. Split your expenses into essential and non-essential costs. Where possible, try to find cheaper alternatives or cut down on your non-essential costs. For example, hosting a dinner party instead of going out for a meal, or finding free Christmas events.’
Set a budget — and track your spending
‘Whether you prefer jotting the figures down in a notebook or creating a spreadsheet online, note down all of the costs you’ll need to cover over the festive season such as food, presents, decorations and travel,’ continues Brean.
‘Remember to factor in any events or outings you might attend including Christmas parties or visiting a local Christmas market.’
Once your budget has been set, don’t forget to keep note of what you spend. Writing down everything you buy – whether that’s online or in stores — will help you keep up with all that shopping as you go.